Director + Bad Credit.

jamesh

Hello,

I'm looking to buy a flat in the region of £85k - £100k.

I'm a director of a limited company (50% share)

My earnings are £27,900 (mix of salary & dividends)

I do have some bad credit.

I currently have 3 credit cards, all are cleared monthly so no balance.

1) Barclaycard £9,500 Limit.
2) Halifax Clarity £1,500 Limit.
3) Virgin Atlantic White, £3,700 Limit.

These three were obtained last year, so are new. (Possibly sign my credit is improving)

2013 was a clean year on my credit report, with increasing limits.

For the bad credit I'll list the dates and the worst status for each account.


2008
DEFAULT (12/12/2008 - £374 Payday loan) Satisfied May 2013
DEFAULT (05/09/2008 - £574 Credit card) Satisfied Jul 2013
6 Months Late (£250 credit card limit)


2009, 2010
Various small amounts no new defaults.

2011:
1 month late. (Current account overdrawn £100 max)
2 months late (Another current account overdrawn £100 max)
2 months late (£20 Mobile Phone)
3 months late (£54 mail order)

2012
2 Months Late JAN (£15 mobile phone)
2 Months Late Feb (£20 mobile phone)
1 Months Late April (£30 mobile phone)



Deposit

With a dividend + personal savings I could make a deposit of around £30k, but not sure if this would be enough to get past my bad credit.

Not sure what amount I'd need to get past the bad debt problems.


Alternative

The company has more than enough spare cash to purchase the property.

Could I take a Directors loan from the company, purchase the property then get a mortgage on the property which I would then own as security to repay the company.


Thanks for any input you can offer.

Dave_Ham

However you cut this I would suspect achievable.

Get your Experian,Equifax and Call Credit files to an experienced broker

Good luck

kingstreet

With two or three years' SA302s confirming that income and a deposit of at least 25%, I suspect the historic adverse and late payments won't be too much of an issue.

I think you'd be better off putting this in the hands of a good whole market broker to get the best rate.